What is a registered disability savings plan (RDSP)

A registered disability savings plan (RDSP) is a savings plan intended to help an individual who is approved to receive the disability tax credit (DTC) to save for their long-term financial security.

Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included as income to the beneficiary when paid out of an RDSP. However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and the proceeds from rollovers are included in the beneficiary's income for tax purposes when paid out of the RDSP.

For more information on RDSPs, go to Savings and pension plan administration.

Anti-avoidance rules

RDSPs will be subject to anti-avoidance rules similar to the rules already in place for registered retirement income funds (RRIFs), registered retirement savings plans (RRSPs), and tax-free savings accounts (TFSAs). The change will be effective for RDSP transactions after March 22, 2017. The previous RDSP anti-avoidance rules will continue to apply for RDSP transactions undertaken prior to March 23, 2017.

The anti-avoidance rules for RDSP provide for a special tax on certain advantages that unduly exploit the tax attributes of an RDSP, as well as special taxes on prohibited investments and on non qualified investments.


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